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Aussie Bond futures were resilient.....>

AUSSIE BONDS
AUSSIE BONDS: Aussie Bond futures were resilient to the latest round of risk on
flows triggered by comments from U.S. President Trump. Worth noting that NAB now
look for the RBA to hike in H220, they previously expected 1 25bp hike in each
of Q219 & Q319. 
- Early trade saw 3-Year futures SYCOM low hold, before front contracts ticked
higher through the second half of the day. YM/XM a touch flatter at 48.25, while
the cash 3-/10-Year yield differential last trades at 49.0bp.
- White & red Bills trade unchanged to 2 ticks lower last. A bit of focus has
crept into the Aussie x-ccy basis swap space over the last 36 hours or so, as we
move towards calendar year end. AU/US 3-Month x-ccy basis swaps have moved
higher. 3-Month BBSW fixing has risen to 2.0000% from the 1.9500% seen at
November's final fix. Elsewhere the RBA's reverse repo rates have squeezed
higher, with today's 30-day ops conducted at 2.157%.
- Latest AOFM ACGB auction was ignored, with the Bond not featuring in the
deliverable basket for XMZ8 (although it will be the next Bond to move into the
XM deliverable basket).
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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